The Zhitong Finance App learned that British Petroleum (BP.US) said in a statement on Tuesday that after the energy trading and refining business reaped huge profits in the third quarter, the company's net debt reached its 2027 target ahead of schedule. BP said that net debt at the end of the third quarter was about US$13.5 billion to US$14.5 billion, below the target range of US$14 billion to US$18 billion set by the company for the end of 2027. The company said the results were boosted by strong performance in oil and gas trading and refining operations.
The war in Iran drove oil prices to soar above $100 per barrel, making it easier for British Petroleum to reach its debt target. This seven-month conflict, combined with Ukraine's repeated drone attacks on Russian refineries, has also tightened the refined oil market. The increase in fuel prices far exceeds that of crude oil.
European oil giants such as British Petroleum have been able to profit from supply disruptions and price fluctuations with their vast trading operations and refinery networks. Shell reported last week that refining profit margins for the quarter set a record.
BP CEO Meg O'Neill took office in April of this year, and she acted quickly to strengthen her balance sheet, including selling assets. She said last week that of all companies in the industry, British Petroleum “has been the most leveraged for over a decade” and must make better use of investor capital.
The London-based company also reported between $3 billion and $4.5 billion in impairment charges, mostly from its energy transition business. BP will announce its full third quarter results on October 30 and hold a strategy conference in New York on December 15.